AMD has ‘the strongest upward [earnings per share] revisions’ among chipmakers and a ‘clear path to doubling EPS,’ Bank of America says.
Bank of America analyst Vivek Arya has a buy rating and $135 price target on the Santa Clara, Calif., company.
Advanced Micro is trading at a big discount to its competitors, he noted.
AMD has “the strongest upward [earnings-per-share] revisions among chipmakers and a clear path to doubling EPS to about $5 per share.”
The stock recently traded at $109.94, up 3.2%. It has gained 14% over the past six months amid the global chip shortage.
A couple weeks ago, TheStreet.com Founder Jim Cramer said AMD is “pantsing” Intel, the largest U.S. semiconductor seller.
Morningstar analyst Abhinav Davuluri puts fair value at $109 for AMD.
“We assess AMD’s stand-alone fair value at $98 per share (up from $91). We assign a 75% probability of AMD’s acquisition of Xilinx closing, and our fair value for the combined entity would be $112 per share.”
Further, “management is confident in the firm’s product pipeline for 2021 and now expects 60% revenue growth for the full year (up from 50%),” Davuluri said. “We believe this guidance should be easily attainable.”